Hudson Technologies Inc /Ny (NASDAQ: HDSN)

Hudson Technologies Inc /Ny operates as a refrigerant services company, offering innovative solutions to recurring problems within the refrigeration industry. The company provides environmentally sustainable solutions from the initial sale of refrigerant gas through recovery, reclamation, and reuse, peak operating performance of equipment through energy efficiency, emergency air conditioning and refrigeration system repair, to final refrigerant disposal and carbon credit trading. Hudson Technologies Inc /Ny operates principally through its wholly-owned subsidiary, Hudson Technologies Company, and its executive offices are located in Woodcliff Lake, New Jersey.

The company generates revenue through a variety of products and services, including refrigerant and industrial gas sales, refrigerant management services, and carbon offset projects. Hudson Technologies Inc /Ny sells reclaimed and virgin refrigerants to customers in the air conditioning and refrigeration industry, as well as industrial gases to users in or involved with the US Military. The company's refrigerant management services primarily include reclamation of refrigerants, laboratory testing, and banking services tailored to individual customer requirements. Additionally, Hudson Technologies Inc /Ny provides RefrigerantSide® Services, which consist of system decontamination to remove moisture, oils, and other contaminants intended to restore systems to designed capacity. The company also participates in the generation of carbon offset projects, acquiring CFC refrigerants and developing relationships within the emerging environmental markets to implement opportunities for the creation and monetization of verified emission reductions.

• Refrigerant and Industrial Gas Sales: Hudson Technologies Inc /Ny sells reclaimed and virgin refrigerants, as well as industrial gases. The company purchases virgin refrigerants, such as HFCs and HFOs, from several suppliers, which are then resold. Additionally, the company regularly purchases used or contaminated refrigerants, which are reclaimed using the company's high-speed proprietary reclamation equipment, its proprietary Zugibeast® system, and then resold. The company's industrial gas sales are predominantly to users in or involved with the US Military, with a significant contract with the United States Defense Logistics Agency (DLA) for the management, supply, and sale of refrigerants, compressed gases, cylinders, and related services.

• Refrigerant Management Services: Hudson Technologies Inc /Ny provides a complete offering of refrigerant management services, which primarily include reclamation of refrigerants, laboratory testing through the company's AHRI-certified laboratory, and banking services tailored to individual customer requirements. The company also separates "crossed" (i.e., commingled) refrigerants and provides reusable cylinder refurbishment and hydrostatic testing services.

• RefrigerantSide® Services: These services include system decontamination, refrigerant recovery and reclamation, predictive and diagnostic services, and system optimization. The company offers diagnostic services that predict potential problems in air conditioning, process cooling, and refrigeration systems before they occur. Hudson Technologies Inc /Ny has also developed several patents for its SmartEnergy OPS®, a system for measuring, modifying, and improving the efficiency of energy systems, including air conditioning and refrigeration systems in industrial and commercial applications.

• Carbon Offset Projects: Hudson Technologies Inc /Ny pursues opportunities to acquire CFC refrigerants and is developing relationships within the emerging environmental markets to implement opportunities for the creation and monetization of verified emission reductions from the destruction of CFC refrigerants. The company is also pursuing opportunities to acquire HFC refrigerants for the creation and monetization of verified emission reductions from the reclamation of HFC refrigerants.

Hudson Technologies Inc /Ny competes with numerous regional and national companies that market reclaimed and virgin refrigerants and provide refrigerant reclamation services. The company's competitive advantages include the performance of its proprietary high-volume, high-speed equipment used in its operations, the breadth of services offered, including proprietary RefrigerantSide® Services and other on-site services, and its pricing strategy, particularly with respect to refrigerant sales. The company's marketing strategy focuses on educating the marketplace about its alternative solutions and the superiority of its RefrigerantSide® Services compared to traditional methods.

Hudson Technologies Inc /Ny provides its products and services to commercial, industrial, and governmental customers, as well as to refrigerant wholesalers, distributors, contractors, and refrigeration equipment manufacturers. The company generates sales by customer purchase order on a real-time basis and does not carry a backlog of sales. Notably, the United States Defense Logistics Agency (DLA) has been a significant customer, accounting for greater than 10% of the company's revenue and over 10% of the outstanding accounts receivable in recent years. The company has also entered into strategic relationships with AprilAire and Lennox International Inc. to meet specific regulatory requirements and supply certified reclaimed refrigerants.